Rosie Dry Cleaning was started on January 1, Year 1. It experienced the following events during its first two years of operation: Events Affecting Year 1

1. Provided $29,810 of cleaning services on account.
2. Collected $23,848 cash from accounts receivable.
3. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account.

Events Affecting Year 2

1. Wrote off a $224 account receivable that was determined to be uncollectible.
2. Provided $34,788 of cleaning services on account.
3. Collected $30,787 cash from accounts receivable.
4. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account.

Required a. Record the events for Year 1 and Year 2 in T-accounts. b. Determine the following amounts:

1. (1) Net income for Year 1.
2. (2) Net cash flow from operating activities for Year 1.
3. (3) Balance of accounts receivable at the end of Year 1.
4. (4) Net realizable value of accounts receivable at the end of Year 1.

c. Repeat Requirements b for the Year 2 accounting period.

Cash					Retained Earnings
Year 1					Beg. Bal.
2.	23,848
Bal.	23,848				End. Bal.
Year 2
3.	30,787
End. Bal.	54,635
Accounts Receivable					Service Revenue
Year 1					Year 1
1.	29,810	23,848	2.
Bal.	5,962				Bal.
Year 2					Year 2
2.	34,788	224	1.
		30,787	3.
End. Bal.	9,739				End. Bal.
Allowance for Doubtful Accounts					Uncollectible Accounts Expense
Year 1					Year 1
Bal.					Bal.
Year 2					Year 2
1.	224
End. Bal.	224				End. Bal.

Determine the following amounts: (Round your intermediate calculations to nearest whole dollar.) (1) Net income for Year 1. (2) Net cash flow from operating activities for Year 1. (3) Balance of accounts receivable at the end of Year 1. (4) Net realizable value of accounts receivable at the end of Year 1.

Show less

(1)	Net income for Year 1
(2)	Net cash flow from operating activities for Year 1
(3)	Balance of accounts receivable at the end of Year 1
(4)	Net realizable value of accounts receivable at the end of Year 1

Repeat Requirements b for the Year 2 accounting period. (Round your intermediate calculations to nearest whole dollar.)

(1)	Net income for Year 2
(2)	Net cash flow from operating activities for Year 2
(3)	Balance of accounts receivable at the end of Year 2
(4)	Net realizable value of accounts receivable at the end of Year 2